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The NYSE plans Bitcoin options in collaboration with CoinDesk, bringing another TradFi giant into the world of cryptocurrencies
The New York Stock Exchange plans to list options on indices that track the price of bitcoin (BTC)bringing another traditional finance giant into the cryptocurrency space.
Cash-settled derivatives will follow the CoinDesk Bitcoin Price Index (XBX), a 10-year-old landmark run by this news organization’s corporate sibling, CoinDesk Indices. The XBX is currently the benchmark for $20 billion in exchange-traded fund assets under management, according to reports Wednesday Press release announcing the partnership.
“While traditional institutions and everyday investors are demonstrating their broad enthusiasm for the recent approval of bitcoin spot ETFs, the New York Stock Exchange is thrilled to announce its partnership with CoinDesk Indices,” said Jon Herrick, Chief Product Officer of the NYSE. “Following regulatory approval, these options contracts will offer investors access to an important liquid and transparent risk management tool.”
Bitcoin derivatives helped pave the way for this year’s introduction of Bitcoin spot ETFs, which turned into one of the most successful ETF launches in history. The NYSE is owned by the Intercontinental Exchange, which competes with CME Group, whose bitcoin futures are widely held in the industry. The NYSE’s entry into the game provides another TradFi-compatible on-ramp into cryptocurrencies.
In 2023, Intercontinental Exchange’s ICE Futures Singapore partnered with CoinDesk Indices to use XBX for monthly contract settlement for CoinDesk Bitcoin Futures in that country.